Global alpha olefin demand to grow by 4.2% pa to 4.6 mln tons by 2018

21-Apr-14

The global alpha olefin demand is anticipated to grow by 4.2% annually to reach 4.6 mln metric tons by 2018, as per Research and Markets. Major drivers for the market are growth in polyethylene industry, and increasing capacity expansions. Bio-based alpha olefins are currently under the research and development phase, but are likely to gain momentum in the next decade which may be an upcoming opportunity for the manufacturers. There are various applications of alpha olefins that ranges from polyethylene (LLDPE, HPDE), synthetic lubricants, detergent intermediates, oilfield chemicals, paper industry, and additives. Alpha olefin manufacturers have to cater to a wide variety of customers' demands. LLDPE and HDPE captured around half of the market share in the total applications share. 1-butene, 1-hexene, and 1-octene are widely used in polyethylene co-monomers. 1-decene is used to make poly alpha olefins while 1-dodecene is used in detergent alcohols and poly alpha olefins. Major drivers for the market are growth in polyethylene industry, and increasing capacity expansions. Bio-based alpha olefins are currently under the research and development phase, but are likely to gain momentum in the next decade which may be an upcoming opportunity for the manufacturers. There are various applications of alpha olefins that ranges from polyethylene (LLDPE, HPDE), synthetic lubricants, detergent intermediates, oilfield chemicals, paper industry, and additives. Alpha olefin manufacturers have to cater to a wide variety of customers' demands. LLDPE and HDPE captured around half of the market share in the total applications share. 1-butene, 1-hexene, and 1-octene are widely used in polyethylene co-monomers. 1-decene is used to make poly alpha olefins while 1-dodecene is used in detergent alcohols and poly alpha olefins. Chevron Phillips Chemical Company LP (U.S.), Sasol (South Africa), and Shell Chemicals Limited (U.K.) are the major players which hold significant controlling share in this global market. North America will continue to capture large share of the market in the next five years growing at a CAGR of 4% from 2013-2018. The alpha olefins market for emerging economies of the world is expected to grow with higher growth rates, while the market in matured economies will grow at modest rates.